One of the riskier currencies, crippled by the Chinese interest rates hike, was the Australian dollar, which slumped today against its US counterpart after trading at parity last week.
The increase of the interest rates is considered to be the attempt of the Chinese policy makers to slow the growth. The slower China’s growth isn’t particularly good for Australia, as China is the nation’s biggest trading partner. Earlier the Aussie surged as the Monetary Policy Meeting Minutes of the Reserve Bank of Australia signaled about the possible rates hike in Australia itself, saying that “interest rates would need to rise at some point if the economy evolved in line with the central scenario of a gradual tightening in resource utilization”.
AUD/USD traded at 0.9741 as of 13:41 GMT today after it opened at 0.9887 and advanced as high as 0.9957.
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